Feed grain cost inflation expected to remain muted into next year

Pork Profit Maximizer – Retail Edition April 29, 2019 Feed cost inflation has been extremely limited in the last three years, helping bolster livestock producer margins and one of the key factors behind the surge in US meat protein production. It is still too early to focus on planting progress despite speculation of excessive moisture […]

Weekly Export Numbers Indicate Slowdown in Shipments to Other Markets

Pork Profit Maximizer – Food Service Edition April 29, 2019 After the fireworks in the previous two reports the latest USDA weekly pork export update was much more muted. Bullish traders are constantly looking for more information that US pork supplies will tighten up due to strong exports. This latest update did not contain that. While […]

Market Hogs and Supply Estimates for Spring and Summer

Pork Profit Maximizer – Retail Edition USDA estimated the total number market hogs as of March 1 at 67.948 million head, 2.1% higher than the previous year. Analysts polled ahead of the report on average also expected the number of market hogs to be 2.1% higher than the previous year. But while the increase in […]

Slaughter Implications of the March USDA Hogs and Pigs Report

Pork Profit Maximizer – Food Service Edition Lean hog futures have pulled back in the last two trading sessions as the market consolidates after the torrid rally of the last two weeks. Additionally, participants are paying close attention to reports of US exports and export sales to China, with no new bullish news reported recently. […]

Buyers Look To Get Ahead of the Market

Pork Profit Maximizer – Foodservice Edition March 4, 2019 There is little question that the current pork market offers plenty of opportunities to promote pork in Q2. The three charts in the previous page illustrate the seasonal trend for the price of butts, ribs and pork trim in May, June, and July. Buyers that recognize […]

Lower Pork Prices Offer Opportunities for Retailers Headed Into Spring

Pork Profit Maximizer – Retail Edition March 4, 2019 The pork cutout last week was as low as $59.6/cwt, 23% lower than a year ago and the lowest cutout value since the fall of 2009. There is not one single reason for the sharp value erosion in the pork complex. Pork supplies have increased, something […]

Pork Production Running Over 5% Above Year Ago Levels

Pork Profit Maximizer – Food Service Edition February 18, 2019 Weekly hog slaughter in the first seven weeks of the year was 4.5% higher than a year ago and about 2 points higher than what was expected based on the inventory survey. We think hog weights during this period were about 1% higher than a […]

Larger Pork Supplies Pressure Hog Prices Lower

Pork Profit Maximizer – Retail Edition February 18, 2019 So far pork supplies have far exceeded expectations. Following the release of the December ‘Hogs and Pigs’ report, we estimated that pork production in the first quarter of 2019 would be 1.9% higher than the previous year. It is important to note that there was an extra […]

More Packing Capacity and Fewer Hogs Bolster Prices and Pressure Margins

Pork Profit Maximizer – Retail Edition February 4, 2019 It is important to understand the myriad ways in which hogs are priced and delivered these days. Gone are the days when all you had to do was look at the IA/MN lean base price and have a pretty good idea where hogs were trading at. […]

Ample Pork Supplies Pressure Spot Prices

Pork Profit Maximizer – Food Service Edition February 4, 2019 Ample pork supplies pressure spot prices but futures maintain ASF risk premiums for summer and fall. Nearby lean hog futures have come under pressure in recent weeks and the premiums following African Swine Fever (ASF) outbreaks in China have been mostly erased at this point. […]